Abstract
This paper establishes a comprehensive, mathematically unified framework for predictive physical asset maintenance and capital reserve capitalization by synthesizing continuous-time multi-state degradation processes with structural insurance risk theory. We model physical assets as Piecewise Deterministic Markov Processes (PDMPs) navigating an underlying Health-Sickness-Death ($\cS = \{H, S, D\}$) state space, where telemetry from Internet of Things (IoT) sensors drives real-time state transitions. The asset degradation state modulates the intensity of downstream claims, namely catastrophic failure shocks and high-cost repair calls, within a generalized Cram\'{e}r-Lundberg collective risk framework.